Economic Inequality and Capital City

In this post-industrial civilized society or some sociologists call it the information society, we ought to believe there was an uprising economic inequalities that flourished the mainstream media. There was a famous debate of the century in the essence of solving the issue. Some labeled it as the product of free market capitalism with an immense quantity of corporate and individual freedom that brainwashed with the nature of the market. They would likely to believe a ‘leviathan’ or a powerful institution to generate laws and order to maintain the sustainability of the economic equality. And the opposite thought that economic inequality was created with the nature of hard working individuals that thrived in the top of the food chain of the ‘ecosystem’ as darwinian approach on survival instinct between animals. And humans, unlike another regular animals with the essence of consciousness and high intellect compete to one another in order to fullfill their self interest in the cost of the environment. And as the result of that process of the ecosystem, there are winners and losers. That theory embodied with the natural monopoly of a firm in a competitive market. But, on this article I would likely to unveil a new thoughts of the existence of economic inequality that summed up wealth and income inequality. Economic inequality was driven by the nature of the state, that was thriving a central planning approach on a given particular set of a geographical region.

In some cases, every nations on earth was given a set of territory with an additive identity to support the indenpendency of a nation (e.g. Currency, Capital city, Population, Political system, etc.). According to the political science, the identity of a nation should be comprised as the existence of that nation to achieve a fullfillment of autonomy in a set territory. With that old point of view the capital city as the thriving part of a nation should’ve gotten developed compared to the other region. The national budget to splurge in capital city was shown to be higher than any part of other cities that included in a particular state. As a result, a better infrastucture was built upon in the capital city and the wealth of the state transferred mostly to the society within that region. The capital city would’ve encountered an enormous rate of urbanization, when people really thrive for a living. A demagogue of economic inequality happened, within small periods of time. Regional GDP rate was severely higher in capital city than any other cities. And somewhat this idea was overshadowed by the inequality as a new virus to the state. It’s somewhat seen as likely as a cancer.

A better analogy would be a multinational corporation having a large numbers of smaller sectors. In the internal part of corporate management that agreed upon by the CEO and Board of Directors, it’s a natural sense to splurge their balance sheet to improve their central building alongside with them, it’s mandatory. While other smaller sectors of the same firm, receive a smaller part of the central budget to thrive. In economics, that concept was somewhat refered as cash flow constraints. With the same attitude that other profit-seeking organization would sustain their business. The CEO is basicly the executive part in the political hierarcy, following with the board as the legislative. Every nations on earth was excavating this idea and accepted throughout generations. While in that process, because of the difference of assets and conventionally using cash as a building blocks of statistical measurement, the economic inequality was ‘right there’. Even before the birth of the Max Otto Lorenz, who also gave birth to the lorenz curve and the gini coefficient as a tool of measurement.

In this 21st century, the idea of inequality driven by that process of state planned law on the essence of capital city was overshadowed and discredited because of the lack of the political boost to thrive a better bureaucratic occupation. The effect of mainstream media as the coverage and dynamics of the particular set of expression of hatred towards inequality and some who oppose with the mainstream causes of ‘state vs individual’ was a big success. Large corporations are covering themselves in darkness, with bribery to the media of the devil government. Meanwhile on the other hand, politicians lobbied media to overcome with propaganda of socialism as a better solution to the issue of economic inequality. And those debates are carving the benefits and overloading the cost to the society, with the entracing low level of productivity in the partial stasis growth.